Question : 91.When a job completed, the transaction recorded with a A.debit to : 1302691

 

91.When a job is completed, the transaction is recorded with a

A.debit to Work in Process Inventory and a credit to Cost of Goods Sold.

B.debit to Finished Goods Inventory and a credit to Work in Process Inventory.

C.debit to Cost of Goods Sold and a credit to Finished Goods Inventory.

D.debit to Work in Process Inventory and a credit to Finished Goods Inventory.

 

92.Which of the following is not a commonly used measure of activity for allocating overhead?

A.Direct labor cost

B.Machine hours

C.Sales commissions

D.Direct labor hours

 

93.During the month of August, Ranson Productions applied overhead to jobs using an overhead rate of $0.60 per dollar of direct labor. Actual direct labor in August was 12,000 hours at $15.00 per hour, for a total of $180,000. Estimated overhead in August was $111,600. Actual overhead was composed of the following items:

 

Indirect materials              $  16,400

Indirect labor               22,000

Utilities               24,500

Depreciation              38,700

Repair expense              13,500

Total               $115,100

 

How much overhead was applied during the year by Ranson Productions?

A.$108,000

B.$115,100

C.$111,600

D.More information is needed to answer

 

94.Which of the following is the most reasonable allocation base for a highly mechanized process?

A.Direct labor hours

B.Machine hours

C.Direct materials cost

D.The number of different materials used to produce the product

 

95.To what should the allocation base used to apply overhead be most strongly associated?

A.The cost of direct materials

B.The cost of direct labor

C.The estimated overhead cost

D.The total product cost

 

96.Predetermined overhead rates are calculated using

A.actual overhead costs and actual levels of the allocation base.

B.estimated overhead costs and estimated levels of the allocation base.

C.actual overhead costs and estimated levels of the allocation base.

D.estimated overhead costs and actual levels of the allocation base.

 

 

97.The calculation for the predetermined overhead rate is

A.estimated overhead cost times the estimated level of the allocation base.

B.estimated overhead cost divided by the estimated level of the allocation base.

C.estimated level of the allocation base divided by the estimated overhead cost.

D.estimated overhead cost minus the actual overhead cost.

 

98.For which period of time, the predetermined overhead rate is generally set in advance?

A.A day, because costs can change on a daily basis

B.A week, because labor costs differ from week to week

C.A month, because job-order cost sheets are generated each month

D.Ayear, because of the need for the overhead rate to stay the same from month to month

 

99.Wilson Company applies overhead using machine hours as the allocation base, at a rate of $15 per machine hour.Job 44 requires $320 worth of material, 11 hours of labor at $16 per hour and 9 machine hours. What is the cost of job 44?

A.$496

B.$135

C.$661

D.$631

 

 

100.Savannah Factory applies manufacturing overhead based on direct labor cost. Information concerning manufacturing overhead and labor for August follows:

 

EstimatedActual

Overhead cost              $174,000              $171,100

Direct laborhours               5,800              5,900

Direct labor cost               $87,000              $89,975

 

How much overhead should be applied in total during August?

A.$179,950

B.$174,000

C.$177,000

D.$171,100